Bitcoin Bear Market Persists as Gold Hits New All-Time High, Decoupling the Two Assets

CryptoQuant's Bull-Bear Market Cycle indicator shows that the Bitcoin market is currently going through a bearish phase. The MVRV ratio also indicates a similar trend.

The price of Bitcoin has fallen below a key technical level and is showing signs of further decline, according to a recent analysis by CryptoQuant.

The world’s largest cryptocurrency has been trading below its 50-day simple moving average (SMA) since August 26, indicating a bearish trend in the market. The MVRV ratio, which measures the average profit/loss of Bitcoin holders, has also stayed below its 365-day SMA during this period, further suggesting a bear market.

However, the analysis also highlights a potential shift in the behavior of Bitcoin long-term holders (LTHs). According to the report, these holders are spending their Bitcoin at lower profit margins compared to recent months.

The LTH Spent Output Profit Ratio (SOPR) ribbons, which indicate the spending patterns of LTHs, have been trending downwards since late July, suggesting that LTHs are selling their Bitcoin at lower prices. This could be an indication of weaker buying pressure in the market.

The CryptoQuant report also notes that the LTHs are still in profit overall, as the short-term LTH-SOPR remains above 1. This suggests that most LTHs are not selling at a loss yet.

But, the continuous decline in the LTH-SOPR ribbons could lead to further selling pressure and lower prices in the coming weeks.

Bitcoin’s price has been struggling to break above key technical levels in recent months, and the latest data suggests that the bear market may not be over yet. However, some experts are optimistic about bitcoin price predictions and believe that the market will rebound soon.

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